ELECTRICAL APPLIANCES LOOK SET FOR BETTER TIMES

       The Thai electrical-appliance market is believed to have passed through the worst of the economic crisis and, with the government's second-phase economic stimulus measures, is now forecast to pick up in the final quarter.
       This is a finding following research conducted by Gfk Retail and Technology (Thailand), a market research firm specialising in retail audits for consumer durables.
       Country manager Chaiyarit Piyabootr yesterday said the positive signs of recovery in the industry in the fourth quarter included the world economic situation - many business figures believe the economic crisis has bottomed out - advance export orders and the bright outlook of the Thai stock market.
       Besides, unemployment has shown signs of easing as many companies resume recruiting.
       Moreover, the government's stimulus package will inject money into the system, create jobs and eventually increase consumer spending, said Chaiyarit.
       The only potential negative factor he is keeping an eye on is whether export markets have genuinely recovered. Seventy per cent of the Kingdom's gross domestic product comes from exports.
       Gfk has tracked five segments of electrical appliances - consumer electronics, home appliances, photographic, telecoms and information technology.
       The total sales value of these segments during January to July dropped by 7.7 per cent from the same period last year, while unit sales fell by 2.4 per cent.
       The photographic segment, comprising digital cameras and accessories, showed the highest drop in sales value and unit terms at 32.9 per cent and 23.2 per cent, respectively.
       Sales value and unit sales of consumer electronics declined by 3.8 per cent and 5 per cent from the same period last year, respectively.
       Despite dramatic unit-sales growth of 81.7 per cent in flat LCD TVs from the same period of 2008, other categories fell sharply. Flat-TV sales recorded the deepest plunge at 98.4 per cent.
       For the home-appliance segment, small products such as microwave ovens, food-preparation items, vacuum cleaners and hair dryers showed growth, in line with more people tending to live in condominiums.
       Air-conditioner unit sales and value during the first and second quarters increased from last year, but the numbers have dropped in the last few months due to an unclear picture after the government approved a tax cut.
       Despite many positive signs, Chaiyarit did not provide a forecast of whether the sales value and volume figures would swing into positive territory in the next quarter.
       However, he said one indicator of recovery was the increase in export value from appliance-manufacturing countries such as South Korea and Taiwan, as well as trading territories and countries such as Hong Kong and Singapore. The electrical-appliance sector in these markets is improving, he added.
       But Manuele Kautzsch, regional account manager, Asia home appliance, Gfk Asia, forecast that the Thai electrical-appliance industry would pick up in the final quarter thanks to the global economic recovery.
       She also believes the sales value of all categories of the home-appliance segment in Thailand will swing into positive territory next year.
       Gfk Retail and Technology (Thailand) is the Asian subsidiary of Germany's Gfk Group, which has operations in more than 40 countries worldwide.